As you evaluate the various project delivery systems available, you must consider the features and benefits inherent to each, and match your risk tolerance with the appropriate system that best meets your objectives. We work closely with our clients to dispel any confusion about project delivery systems so that we may help our clients initiate the project development process with confidence.

We believe that the three most widely used project delivery systems that offer the greatest advantages to our clients are Negotiated General Contracting, Design/Build and Construction Management. A brief overview of these delivery systems is presented below.

General Contracting is a project delivery system whereby the General Contractor may be selected on the basis of merit and/or price, through an open or select invited bid process. The selected General Contractor may or may not be responsible for organizing the pre-construction process at the discretion of the Owner. The General Contractor is contractually obligated to the Owner to construct the project for a fixed lump sum price or a guaranteed maximum price (GMP). The General Contractor holds no design responsibility; instead, the Owner holds a separate contract for the design and engineering of the project with an architectural firm that works independently of the General Contractor. The Owner, Architect and General Contractor collaborate cooperatively to reach agreement on matters of schedule, cost, materials, means and methods, to complete the project to the satisfaction of the Owner. When choosing this project delivery system, it is in the Owner's best interest to select a General Contractor capable of providing extensive due diligence and pre-construction services to minimize the potential for Change Orders. If the Owner has assembled the right project team, this project delivery system offers a greater degree of cost, scope and scheduling certainty, than the traditional Design-Bid-Build method.

Design/Build is a project delivery system in which the Owner contracts with a single-source entity to provide design, engineering and construction services under a single contractual agreement. The Design/Builder may be selected on the basis of merit and/or design capabilities and/or initial construction pricing through an open or select bid price process. The selected Design/Builder is directly responsible for organizing the design and construction of the project from pre-construction through final completion. The Design/Builder is contractually obligated to the Owner for the design and construction of the project for a fixed lump sum price or a guaranteed maximum price (GMP), which is established at the end of the pre-construction phase.

The Owner holds one contract for the design and construction of the project and the Design/Builder may provide design and engineering services either through their in-house capabilities or with out-sourced design and engineering consultants under contract to the Design/Builder. The Owner benefits by the complete collaboration of the project team on matters relating to schedule, cost, materials, means and methods, and achieves cost and schedule certainty much earlier in the construction process than with the traditional Design-Bid-Build method. The Design/Build project delivery system minimizes the Owner's risk because the Owner has single-source accountability from the Design/Builder.

Construction Management is a project delivery system that may take one of two forms: Construction Manager Agency and Construction Manager At-Risk. In either case, the Owner typically contracts separately with an Architect and a Construction Manager at the beginning of the project. Often, the Construction Manager works with the Owner to establish the project budget. While the Architect performs their design and engineering services, the Construction Manager may offer value-engineering suggestions regarding materials, means, and methods to help control the project budget during the design phase. Once the project proceeds to the bid phase, the Construction Manager usually administers the bid process and subsequently, advises the Owner on subcontractor selection. The Owner will then enter into separate contracts with each trade contractor necessary to complete the scope of the construction work.

The Owner must understand certain important variations when using Construction Management as their project delivery system. Construction Manager Agency is the variation by which a person or firm is contracted by the Owner to administer the construction of a project, acting as the Owner's agent and directing the efforts of subcontractors and vendors who are directly contracted by the Owner. The Owner remains solely responsible for project costs, risks, and schedule. In using the other variation, Construction Manager At-Risk, the Owner contracts with a person or firm that assumes the financial risks of project costs and schedule. The Construction Manager At-Risk provides pre-construction and construction phase services, giving the Owner a guaranteed maximum price (GMP) and a scheduled delivery date at the conclusion of the pre-construction phase. Both of these variations offer the Owner the possibility for open-book accounting and shared savings (below the GMP) while only the Construction Manager At-Risk is obligated to provide schedule and cost certainty to the Owner.

Owners are faced with a seemingly endless stream of decisions that must be made in order to complete their projects. Perhaps the most crucial decision that must be made is the selection of the appropriate project delivery system matched to the capabilities of the project team balanced against the Owner's risk tolerance. The professionals at Marous Brothers Construction would be happy to answer any questions you may have regarding the different project delivery systems available and assist you in the selection that best suits the needs of your project. Please contact our Business Development Department for more information.